UKEF commits to going carbon neutral by 2050 ahead of COP26
UK Export Finance (UKEF), the UK’s Export Credit Agency, today unveiled an ambitious new plan to go net zero by 2050, decarbonising its financial portfolio and increasing its support for green exports.
As part of its new Climate Change Strategy, launched today, the new target will require UKEF to increase its support for clean growth, renewables and climate adaptation exports while also improving its management of climate-related risks on its portfolio.
This comes as the Prime Minister is set to tell fellow world leaders at the UN General Assembly today that climate change and economic growth are not mutually exclusive trade-offs but are instead each vital for the success of the other.
UKEF’s commitment is yet another step the UK is taking to prevent global temperatures rising above 1.5C and to protect our planet and people from the intensifying impacts of climate change.
UKEF currently has a capacity of £50 billion to support UK exports through loans, insurance and guarantees, issuing £12.3 billion of financial support to businesses last year. This capacity will be entirely carbon neutral by 2050 on a net basis.
In less than 50 days, the UK will host the crucial UN climate change conference COP26 in Glasgow. Financial institutions have a vital role to play in meeting global net zero commitments and UKEF is embracing its responsibility to tackle climate change.
Anne-Marie Trevelyan, International Trade Secretary, said: “This plan is among the most ambitious of any Export Credit Agency worldwide. It puts UK Export Finance squarely in support of green exports to tackle climate change, level up the country and help us recover from the pandemic. UKEF’s net zero pledge shows the UK’s climate leadership and is an encouragement for other countries to follow suit. Its world-leading financial products help British businesses capture billions of pounds worth of foreign deals, boost green exports and give hope that temperatures can be kept in check.”